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By Pete Mugleston | Mortgage Advisor

Pete has been a mortgage advisor for over 10 years, and is regularly cited in both trade and national press.

Updated: 10th November 2020*

The largest of the Channel Islands, Jersey is a self-governing body of the United Kingdom. But it isn’t part of the UK and there are different tax arrangements when it comes to buying a property there.

So, for mortgages in Jersey, you’ll have to apply for international finance. Getting a mortgage on a property abroad involves different considerations and risks that you should know about before you go through with a purchase.

So, if you’re interested in a Jersey Channel Islands mortgage, use this article as a starting point.

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How can I get a Jersey mortgage?

One of the benefits of getting a mortgage in Jersey is that, although it’s considered to be an international mortgage, all transactions are in UK sterling so there are no exchange fees or risk of currency fluctuations involved.

It also means you have a wider pool of lenders to choose from giving you a chance to shop around and find the best deal for your personal circumstances. An international broker experienced in Jersey properties can help you do this.

Can I get a buy-to-let mortgage in Jersey?

Yes, it is possible to get a Jersey buy-to-let mortgage but there are considerations that you should be aware of, especially the costs involved which include bank fees, legal costs, fees paid to surveyors, stamp duty and land transaction fees as well as any costs involved in getting the property ready for tenants.

Secondly, you should be aware of Jersey Housing Laws. If you’re intending to purchase a freehold property, you need to have the required ‘housing qualifications.’ Your rights will vary according to whether you yourself have lived in Jersey for less than five years, less than 10 years and whether you’re considered a ‘high-value resident.’

In order to fully understand these implications, we recommend that you speak to a broker who specialises in Jersey mortgages. Luckily we work with some so can put you in touch with the right lender, just make an enquiry and we’ll connect you.

Can I buy a commercial mortgage in Jersey?

Jersey is a popular location for many offshore companies who are exempt from paying local taxes. These businesses need to have been incorporated in Jersey and have their registered office there.

Commercial property is therefore available in Jersey, usually for these reasons but if you’re a business or are looking to start one, it’s essential that you understand all the implications of being based in Jersey before you purchase any form of property. You can discuss this with a whole-of-market broker who is experienced in the Jersey market.

Is there mortgage tax relief in Jersey?

There are circumstances in which you can claim mortgage interest relief in Jersey. For example, you can claim tax relief on a loan for an extension on your main residence i.e. a garage, loft or conservatory if you live in the property full-time and it’s a house or flat.

The mortgage must also be with a Jersey provider.

For more information about what tax relief are available in Jersey, we recommend that you speak to an expert who can advise you regarding your own circumstances.

What are the Jersey mortgage rates?

Mortgage rates in Jersey are subject to the same rules as the UK, whereby it depends on whether you opt for a fixed rate or tracker rate mortgage which are in line with the Bank of England base rates. This will be discussed with you when you’re in the process of taking out your mortgage.

Do I need to pay mortgage stamp duty in Jersey?

Buying a property in Jersey will involve the buyer paying stamp duty and Land Transaction Tax (LTT). The amount is determined by the type of mortgage.

There are concessions available to first-time buyers if they meet specific criteria. For example, they cannot have owned or be entitled to any previous property (in Jersey or elsewhere) and the purchase price can’t be over £500,000.

Different rules apply if you intend to purchase a buy-to-let or plan to lease any part of the property related to how much annual rental you’ll receive.

As this will vary between properties and owners, it’s recommended that you discuss this with a Jersey mortgage expert. If you need assistance finding one give us a call, we’ll put you in touch with one that we work with.

How much mortgage can I afford in Jersey?

Mortgage affordability is based on a number of criteria which your broker will go over with you, this is the same for any type of mortgage.

The most important thing a lender wants to know is that you can afford to pay back your loan which is why they will assess you on your earnings and outgoings, any existing debts, your age (as this can affect how many years of earnings you have left, credit history (including any bad credit), dependents and any other sources of income.

Can I get a 100% mortgage in Jersey?

Many first-time buyers are also now seeking 100% LTV mortgages which means they don’t require a deposit, making them more affordable. The 100% mortgage in Jersey isn’t offered by most high-street providers but you may find a specialist provider that does if you have family who can help out as guarantors.

Is there a mortgage calculator for Jersey?

Most mortgage providers that offer mortgages in Jersey will have a mortgage calculator on their website but remember that mortgage calculators only give an indication and cannot give an accurate answer.

You can find out more about mortgage companies in Jersey, the Channel Islands in the next section of this article…

What mortgage providers offer home loans in Jersey?

Most buyers are keen to get the best mortgages in Jersey and the good news is that there are a number of mortgage lenders in Jersey. Here are some of the most popular providers:

HSBC Jersey mortgages

There are a number of different mortgages offered by HSBC including residential and buy-to-let with fixed-rate and variable options.

Barclays Jersey mortgage

Barclays offers overseas mortgages for those wishing to buy property in Jersey whether they are first-time buyers, are remortgaging or want to be part of a shared equity mortgage.

Natwest Jersey mortgages

Natwest have a range of mortgage options for people wishing to buy property on the island.

Skipton mortgages Jersey

As Skipton are an offshore lender they’re experienced in the requirements of getting a mortgage in Jersey and the other Channel Islands.

Lloyds TSB Jersey mortgages

Lloyds are experienced in arranging ex-pat mortgages in Jersey and buying property abroad.

Although the lenders mentioned above are reputable, approaching a mortgage provider directly is not recommended as you will only have access to their deals and could potentially miss out on more favourable rates elsewhere.

The best way to navigate the market is through a whole-of-market broker. The advisors we work with have access to every lender in the UK, including specialist providers who offer mortgages in Jersey and the Channel Islands.

They have experience dealing with the above lenders and have also successfully arranged Jersey mortgages with the following providers…

  • Acorn
  • Santander
  • Newcastle Mortgage Loans
  • And many more

What Jersey mortgage costs are involved?

As explained earlier in the article you may find that you need to pay stamp duty and Land Transaction Tax (LTT).

Are there extra fees for an expat mortgage in Jersey?

As an expat, the mortgages are slightly higher than for ‘domestic mortgages.’ Expect to pay approximately 1% more than Jersey nationals, this is mainly to minimise risks to lenders in the event any problems arise.

What mortgage protection is there in Jersey?

There are a number of ways you can get mortgage protection in the event that you can’t pay back your mortgage back, for example getting ill health or even dying and leaving dependents behind. This includes taking out life insurance or critical illness cover – just make sure your policy covers living in Jersey.

Want to know more? Speak to an expert on getting a mortgage in Jersey

The best-placed person to offer you personal advice on getting a mortgage in Jersey is a whole-of-market broker who is an expert on the island.

We can help you find one, call us Online Mortgage Advisor today on 0808 189 2301 or make an enquiry. We work with credited advisors who can find you an expert broker who understands the market and already knows the lenders.

So sit back and let us do all the hard work in finding the broker with the right expertise for your circumstances. We don’t charge a fee and there’s absolutely no obligation or marks on your credit rating.

Updated: 10th November 2020
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FCA disclaimer

*Based on our research, the content contained in this article is accurate as of most recent time of writing. Lender criteria and policies change regularly so speak to one of the advisors we work with to confirm the most accurate up to date information. The information on the site is not tailored advice to each individual reader, and as such does not constitute financial advice. All advisors working with us are fully qualified to provide mortgage advice and work only for firms who are authorised and regulated by the Financial Conduct Authority. They will offer any advice specific to you and your needs. Some types of buy to let mortgages are not regulated by the FCA. Think carefully before securing other debts against your home. As a mortgage is secured against your home, it may be repossessed if you do not keep up with repayments on your mortgage. Equity released from your home will also be secured against it.

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